The BBC reports cycle courier Andrew Boxer, who began working for Excel in September 2013, signing contracts which referred to him as a "contractor" and "sub-contractor", launched his claim for £321.16 after he took a week's holiday in March last year for which he was not paid.

The tribunal concluded that his contract did not reflect the reality of his working situation, with Boxer, whose claim was backed by the Independent Workers Union of Great Britain (IWGB), arguing that while at the firm, he was a “worker” as defined by the Employment Rights Act. Under the act, workers are entitled to basic rights including sick pay, holiday pay and the National Minimum Wage.

The tribunal heard that Boxer worked around nine hours a day for five days a week and had no opportunity to negotiate his pay rate or to provide someone else to do work in his stead.

Excel, who initially offered to pay the claim for holiday pay "without acceptance of the validity of the claimant's claim”, did not produce witness evidence or attend the tribunal hearing. The firm’s offer was rejected by Boxer.

Commenting on the case, Graham Mitchell, employment partner at law Clyde & Co, called the decision the latest in a string of rulings that could “severely impact” the gig economy business model.

“Once again, the Tribunal has found that a gig economy contractor is actually a worker entitled to holiday and holiday pay. This case echoes the successful holiday pay claim brought by a City Sprint courier who asserted worker status. It's the latest in a string of rulings that could severely impact the gig economy business model. It highlights how important it is to look at the reality of the working relationship and not to rely on the labels that the parties use.”

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